The future of the attention economy: Games vs video

Access a recording of the webinar here

Louise Shorthouse
September 2022
What is the attention economy?

Companies are no longer isolated within separate verticals

TV & video

Apple
Relaxing Audio

Apple TV+ Apple Music Apple Arcade Apple News+

Press Games
Amazon

Prime Amazon Prime

Social Video Music Gaming
Twitch Luna
media

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 Smartphone penetration by region, 2021
Are we at peak attention
economy? Device penetration
is a key factor North America 85%

Western Europe 82%

Central & Eastern Europe 68%

Increasing

Content Time
Asia Pacific 60%
Accessibility Attention
Wealth span
Decreasing

South & Central America 56%

Middle East & Africa 31%

Source: Ampere Games

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The attention economy
Setting the scene
Gaming and online video among the huge range of media activities competing for attention

Top media touchpoints used by US consumers Average daily time spent on activity, US

Use social media 90%

Use apps on a mobile device 90%

Watch online TV or streaming

video 86%

Listen to the radio 85%

Watching video
Watch broadcast TV

Gaming
82%

Read online news sites 79% 302 55

Watch influencer video 76% mins mins
Listen to music subscription
services 75%

Play video games 73%

Listen to podcasts 61%

Note: Media touchpoints used at least once in the past 12 months

Source: Ampere Games – Consumer, Q2 2022, ages 16-64, n=2,000 Source: Ampere Games—Consumer, Q2 2022; Ampere Consumer, Q1 2022, ages 18-64

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 The pandemic triggered a surge in media engagement, with gaming leading the way

US, interest over time (scale of 1-100): Google searches during 2020

Animal Crossing
100

Tiger King

80
Tenet

60 WAP

40

20

0
05 January 2020 05 March 2020 05 May 2020 05 July 2020 05 September 2020 05 November 2020

Source: Google Trends

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Gaming and online video services compete for time, but fulfil different need states

Only watch Game and watch Only game

Lean back 20% online video services 5% Lean forward
Passive 75% Active
Relaxing Taxing

Source: Ampere Games – Consumer, Q2 2022, US only

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The competitive interplay of different media varies hugely by age

US Internet users 16-64 who engage in activity daily, by age group (%)
16-24 25-34 35-44 45-54 55-64

10% 8%
15%
28% 14%
17%
17%

22%
23% 23%
21%

25%
22% 24%
24%

18%
31%
23% 26%
9%

Watch broadcast TV channels Watch online TV or streaming video services Play games on games console, PC, Watch videos by influencers
smartphone or tablet

Source: Ampere Games—Consumer, Q2 2022

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Time spent gaming declines more drastically with age than time spent watching online video

Average daily minutes spent on activity, Average daily minutes spent on activity,
by age group, US by gender, US

Gaming Online video Gaming Online video

308
8%
275 274 269 288
258 264

32%
72 71
62 66
48 45
25

18-24 25-34 35-44 45-54 55-64 Male Female

Source: Ampere Games—Consumer, Q2 2022; Ampere Consumer, Q1 2022 Source: Ampere Games—Consumer, Q2 2022; Ampere Consumer, Q1 2022

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 Global live-streaming games video hours watched across all
Gaming and video also have platforms* (bn)
9.3
symbiotic effects: Live- 8.8

streaming games video hours

are up 140% since 2019 5.2
3.7

Q1 2019 Q1 2020 Q1 2021 Q1 2022

100bn US, video services watched by consumers in last month, share by

age (%)
Hours spent watching 18-24 25-34 35-44 45-54 55-64
gaming content on YouTube
in 2020 Twitch 46% 29% 16% 8% 1%

YouTube 18% 22% 22% 22% 16%

Facebook 11% 23% 26% 25% 15%

Note: *Includes Twitch, YouTube, Facebook, AfreecaTV, Trovo, NaverTV, Mildom,

Source: YouTube NonoLive, Openrec, Dlive, VK, SteamTV, Booyah, GareenaLive, KakaoTV Source: Ampere Games; Stream Hatchet

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Time spent gaming is directly monetized more effectively than video viewing

Average consumer revenue per viewing/gaming hour

The US online population views video and plays for online population, by media type, US ($)
games at a ratio of more than 5:1…
0.56 0.55

0.43

... but spends money at a far lower ratio of 3:1

Gaming Broadcast TV Subscription VoD

Note: Combines consumer and market data: consumer data is ages 18-64,
Market data includes consumer revenue for all ages; does not include advertising revenue
Source: Ampere Games—Consumer, Q2 2022; Ampere Consumer, Q1 2022, ages 18-64 Source: Ampere Analysis

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Attention distribution
Video viewers & gamers
 Proportion of Internet users who watch online video daily, by market
US among the top markets for (%)

daily online video content

consumption, peaking in the 63%

25-34 age bracket 59%

51%
49% 48%
44% 44%

55-64 38%
15% 16-24 37%
23%

45-54
US daily online 22%
17% video viewers
by age

25-34
23%

35-44
21%
Brazil Mexico USA Italy Spain UK South Germany France Japan
Korea

Source: Ampere Games - Consumer, Q2 2022 Source: Ampere Games – Consumer, Q2 2022, ages 16-64

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The broadening TikTok audience adds a new competitive dynamic to the attention economy

US, share of TikTok active users by age group and quarter (%)

18-24 25-34 35-44 45-54 55-64

3% 6% 5% 6% 8%
8%
13% 15% 17%
20%
20%

22%
27% 22%
22%
30%

29% 27%
26%
25%

40%
30% 27% 29% 26%

Q1 2020 Q3 2020 Q1 2021 Q3 2021 Q1 2022

Source: Ampere Consumer

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Media usage by age underlines bundling as a logical pan-generational entertainment strategy

US, media touchpoints used by online video viewers, by age group (%)

16-24 55-64

93% 95%
90%
88%
84%
82%
73%
67% 65%

53% 55%
50%
47%
43%

23%
15%

Use a virtual reality Read print magazines Listen to podcasts Watch broadcast TV Watch games-related Play video games Listen to music Use social media
headset video subscription services

Note: Media touchpoints used at least once in the past 12 months Source: Ampere Games – Consumer, Q2 2022

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 Proportion of respondents who play video games daily, by market
Almost half of US Internet (%)

users play games every day,

peaking in the 16-24 age
bracket
44%
42%

38%

32% 32%
55-64 30%
29%
10%
16-24 27% 26% 26%
26%
45-54
17%

US daily
gamers by age

35-44 25-34
23% 24%

Brazil USA Mexico UK France Spain Germany Italy Japan South

Korea

Source: Ampere Games - Consumer, Q2 2022 Source: Ampere Games – Consumer, Q2 2022, ages 16-64

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Two thirds of heavy gamers in the US also watch online video services daily

Top daily activities of heavy gamers, US only (%)

76%

67%

57% 55%

49% 48%
45%

30%
27% 27%
21%

Use social media Watch online Listen to music Watch videos by Listen to the Watch broadcast Watch games- Use Discord Listen to Watch esports Use VR
video services subscription influencers radio TV related video podcasts
services

Note: *Discord is text/voice social platform with 150m monthly active users in 2021 Source: Ampere Games – Consumer, Q2 2022, ages 16-64

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Gamers seek out influencer video content more regularly, despite declining social media engagement

Q1 2022 vs Q1 2020: % change in US gamers 18-64 who engage in activity daily

1%
2% 4% 2%

-5% -7% -3% -8%

-1%

Use social Watch broadcast TV Read online news Listen to the radio Watch online video Listen to music Watch Read print Listen to podcasts
media services subscription services influencer video newspapers

Source: Ampere Consumer, Q1 2022

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Disruptive models
The metaverse and making leisure pay
 Fortnite IP collaborations
IP convergence in games a key
element of emerging metaverse Collaboration Media Season

strategies; brands must NFL cosmetic items NFL Season 6

innovate to capture attention

Major Lazer bundle Major Lazer Season X

Deadpool Marvel Chapter 2: Season 2

Brands in the metaverse
Aquaman DC Comics Chapter 2: Season 3

LazarBeam Influencer Chapter 2: Season 5

Aloy Horizon Zero Dawn Chapter 2: Season 6

Arcane Jinx League of Legends Chapter 2: Season 8

Spider-Man & MJ Marvel Chapter 3: Season 1

Lyric & Wilder Coachella Chapter 3: Season 2

Indiana Jones Indiana Jones Chapter 3: Season 3

Source: Ampere Games

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 Advent of ‘play-to-earn’ frees up previously inaccessible time, and uses appeal of NFTs

Interest over time: Google searches, 2021-2022, US Proportion of US consumers interested in purchasing
NFTs, by age (%)

100
NFTs 56%

48%
80 Metaverse

60

27%

40 21%

11%
20

0
20 June 2021 20 November 2021 20 April 2022 16-24 25-34 35-44 45-54 55-64

Note: Consumers who responded ‘Strongly agree’ or ‘Agree’ to statement “I am interested in buying NFTs”
Source: Google Source: Ampere Games – Consumer, Q2 2022

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 ‘View-to-earn’ may similarly reward video viewers for their engagement

Content viewing drivers: 25-34s vs. all respondents, US (%)

25-34 year olds All respondents

43%
41%

34%
33%
31% 31%
30%
26% 27%

21%
20%
17%

Read positive reviews online I see it a lot on social media My friends/family are watching I like the actors/celebrities Recommended by my It was a genre I like
streaming service

Source: Ampere Consumer, Q1 2022

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Should audiences be valued in the same way as creators?

Influencer marketing market size by year ($bn)

16.4

13.8

9.7

6.5

4.6

3.0

1.7

2016 2017 2018 2019 2020 2021 2022F

Source: Influencer Marketing Hub

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 Key takeaways

Compared with
Multiple media Social media, apps, Video viewing and Short-form video In the emerging
video viewing, time Variation in media
activities are radio, TV and gaming collectively platforms metaverse, play-to-
spent gaming is usage by age
competing for online video are the account for 6 hours increasingly earn and view-to-
directly monetised underlines bundling
consumer attention, leading touchpoints of consumer time compete with earn models are
more effectively, as logical pan-
and are no longer for US consumers per day, at a ratio of traditional video, nascent, but could
driving greater generational
isolated within aged 16-64; gaming more than 5:1 in even among older liberate previously
consumer spend strategy
separate verticals is key for 25-44s favour of video demographics inaccessible time
per unit of time

Source: Ampere Analysis

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